Salaries for senior property staff are soaring at more than three times the 2% rate of inflation. Bonuses are up by 20%. Chinese developers are competing for staff in a booming London development market, according to findings published today, drawn from an analysis carried out for the Evening Standard by Cobalt Recruitment.
“We have been in talks with a number of Asian investors and developers who are moving into the UK market and are looking to hire local development managers,” says Christopher Mackenzie, UK director of the 100-strong recruiter, which specialises in property.
“Salaries are rising across the industry, with the higher gains in the transactional and development teams,” he adds. “Rises are typically 7% to 10% for new hires, versus 4% to 7% salary reviews. This is driven by a scarcity of talent.”
A top-of-the-range development director earning £160,000 a year could expect a bonus of 140% in 2013. The bonus could now reach 170%, says Cobalt. That would take total earnings from £384,000 a year to £432,000. Pay among property lenders is on the up. Staff at director level can earn as much as £400,000 a year, including bonus.
“The real estate banking sector is seeing high demand at both the analyst/associate level and the senior end of the market, because of increased deal flow,” says Mackenzie.
Property Week reported last week that the average salary rose by 4.7% to £51,179 last year. The survey was carried out for the Royal Institute of Chartered Surveyors and recruiter Macdonald & Company. Managing director Peter Moore said: “Last year, January to June was sluggish. Things really took off after August. As such I would anticipate much higher rises in the coming year.”
In January, Andrew Deverell-Smith of the eponymous recruitment company said: “Golden hellos are back. What we are seeing now is a pressure-cooker effect. The lid has been blown off.”
In November, an Estates Gazette survey by Cobalt showed pay had increased by 10% in 2013 after four years of stagnation.
